Leave entitlements when stood down

Carol has been stood down but has paid long service leave and wants to know what happens to her pension in this situation

•••

Q. Carol
I have been stood down from a casual position, due to COVID-19, and I am also on the Age Pension. At this stage it is uncertain whether my situation will be permanent or temporary. My work has offered me my long service leave while I am not being paid. How will this affect my pension? It will probably be about $2600.

A. This is a little bit of a tricky situation as it really does depend on whether your employment situation with your employer is temporary or permanent.

Leave payments paid on cessation of employment are not assessed as income for pensioners of Age Pension age, however, if a pensioner receives paid leave as part of a continuing employer/employee relationship, the amount received is assessed as employment income under the normal income test.

As you were already receiving income from an employer prior to being stood down, and provided you take the long service leave in staggered payments to match the income you would have received in a regular pay cycle, it will not change your regular assessment or payment.

If you decide to take the long service leave payment as a lump sum, it is possible that it could reduce your age pension payments if this is more income than you would normally receive from your employer.

How has the coronavirus pandemic affected your financial situation? Have you been stood down from part-time work? Do you think the government is doing enough to support those who are over Age Pension age and working?

If you enjoy our content, don’t keep it to yourself. Share our free eNews with your friends and encourage them to sign up.

Disclaimer: All content on YourLifeChoices website is of a general nature and has been prepared without taking into account your objectives, financial situation or needs. It has been prepared with due care but no guarantees are provided for ongoing accuracy or relevance. Before making a decision based on this information, you should consider its appropriateness in regard to your own circumstances. You should seek professional advice from a Centrelink Financial Information Services officer, financial planner, lawyer or tax agent in relation to any aspects that affect your financial and legal circumstances.

Written by Ben

RELATED LINKS

Part pensioners can access extra

Ron's super has taken a hit due to the COVID-19 pandemic. Should he get more pension?

Boosting your retirement income

There is a range of ways to supplement your retirement income. Actuary John De Ravin explains whether

How does Centrelink assess bitcoin?

Lynda wants to know what the rules are regarding owning cryptocurrency and the Age Pension.



SPONSORED LINKS

LOADING MORE ARTICLE...